PSD in fragile and conflict-affected environments

“Conflict, violence and peace both shape and are shaped by the economy. (…)The need and desire for access to and control over resources has always been a cause of conflict”; conversely, societies are more likely to prosper and be peaceful if people have fair access to livelihood opportunities and services. (International Alert, 2015).

At a glance: Synthesis Note on PSD in fragile and conflict-affected environments

Even in adverse situations, the private sector still provides the most important route out of poverty for the majority of poor people.

Well-designed private sector development (PSD) programmes can be a viable way of reducing poverty in fragile and conflict-affected environments (FCAEs), but the extent to which PSD helps peace-building is less clear.

Making PSD programmes in FCAEs a success requires that donors mobilise sufficient resources and the right staff capacities to fully understand the situation on the ground. PSD programming should be an integral part of the conflict management process.

Introductory and overview papers

States of fragility. OECD. 2018. Lays out the key trends in fragility, examines the various sources of financing that exist to address fragility, and assesses how well current approaches to fragile contexts are performing.

In November 2016, Danida held a seminar on PSD in Conflict and Fragility Affected Environments – examining various interventions and assessing donor agencies’ current approaches. You can view the presentations and a summary of the event here.